AMD Drops 7% as Musk's Nvidia Bet Overshadows Record Quarter
AMD has more than doubled off its 52-week low of $149.22.
Summary
AMD shares fell 7% Wednesday, extending post-earnings losses after Elon Musk publicly endorsed Nvidia GPUs for SpaceX, calling them 'the best.' The drop came despite AMD's record Q2 revenue of $11.5B and Data Center sales doubling. BofA analyst Vivek Arya urged investors to 'ignore the quarterly noise,' arguing AMD's real AI test begins with the Helios platform ramp in 2027. The bank raised its 2027 EPS estimate by 20% to $15.88 and 2028 by 34% to $23.88, projecting revenue could hit $128B by 2028. The selloff reflects near-term competitive fears, but BofA's long-term thesis hinges on AMD capturing share in a $2T AI compute market.
At the time of this announcement, AMD was trading at $487.33 on NASDAQ in the Technology sector, with a market capitalization of approximately $794.6B. The 52-week trading range was $149.22 to $584.73. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.